Key issues in setting up a limited liability company

A limited liability company, or AS, provides the flexibility of a partnership, but with the liability protection of a corporation. It’s no wonder that it is one of the most popular legal structures for small businesses. If you’re thinking about doing business in Norway, this is the business structure you’ll want to choose. Maybe you’re already sold on the idea of establishing an AS. If this is the case, know that there are some key steps you need to follow. Anyone who wants to start a limited liability company should follow these steps:

1.      Prepare founding documents and articles

After the founding session, you have to prepare the founding documents and articles. If you can’t do this on your own, then get someone to help you. When it comes to Etablere AS, you’ll need to draw up the following documents: memorandum, statutes, minutes of board meeting, confirmations from all board members, and share register. Setting up the paperwork may sound difficult, but in reality it isn’t. If you choose not to use an accountant or a lawyer, be careful when filling them out.  

2.      Open a balance

The opening balance is the amount of money in the company’s account at the beginning of the financial period. If the share capital is made up solely of cash deposits, then there is no need for auditor confirmation of the opening balance. It’s necessary though for an accountant to confirm the first entry in the company’s accounts with a separate letter in the case that share deposits aren’t made with money.

3.      Create a bank account and pay your shares

In order to pay the share capital, you have to open a separate bank account on DBN’s web page. The bank will ask you to provide a signed edition of the founding document and articles of the association. Once this is done, you will be contacted by the financial institution the moment that the share capital will be paid. 30.000 krones is the minimum share capital requirement.

4.      Register the AS with the Brønnøysund Register Center

If you have little knowledge about Opprette aksjeselskap, chances are you don’t know that you have to register the limited liability company with the Brønnøysund Register Center, the agency responsible with registers for Norway. When you receive confirmation of payment from the bank concerning the share capital register your AS with the Brønnøysund Register Center. You can do this online, so there’s no need to go there in person. You’ll soon receive an organization number.

It’s important to keep in mind that establishing an AS is easy as well as cost-effective. If you don’t think that you can handle all this by yourself, get help from an accountant or an attorney. Norway has a strong economy, so you’ll not regret having set up a limited liability company. On the contrary, you’ll be glad that you did. It’s easy to do business, not to mention that Norway is a great place to live. So, what are you waiting for?

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